The Real Deal Los Angeles

Chicago investment firm nabs Northridge multifamily complex for $43.5M

Essex Property Trust bought the building for $36.4 million in 2014
By Katherine Clarke | November 28, 2016 12:00PM

9830 Reseda Blvd and Waterton CEO David Schwartz

9830 Reseda Blvd and Waterton CEO David Schwartz

Waterton, a Chicago-based investment and management firm helmed by David Schwartz, has shelled out $43.5 million for a Northridge multifamily complex formerly owned by Essex Property Trust, The Real Deal has learned.

The sales price pencils out to about $230,000 a unit or about $260 per rentable square foot.

The deal was brokered by Marcus & Millichap. Representatives for both Waterton and Essex did not immediately respond to requests for comment.

Essex bought the property, known as Candlewood North, for $36.4 million in 2014, records show. The 189-unit building, at 9830 Reseda Boulevard, dates back to 1964 but was renovated in the 1990s, according to Real Capital Analytics.

Essex’s California portfolio has been performing well, with the company posting same-property revenue growth of 6.9 percent in the third quarter.

However, CEO Michael Schall sounded a word of caution during the company’s last earning call, projecting continued upticks in supply.

“We expect rental growth rates to return to longer-term averages, as compared to the exceptional rental growth generated in the past several years,” he said.